 "City gas distribution")
Margins for city gas distribution (CGD) players are expected to improve, with the administered pricing mechanism (APM) prices reduced due to a decline in crude oil prices. The upside is partly offset by lower APM allocation since replacement New Well Gas (NWG) costs 20 per cent more.
LNG prices may remain muted over the next 3-4 years due to new LNG capacity and bearish crude oil trends. This implies sustained margin improvement for CGDs, with blended gas costs at $9.7–10 per million British thermal units (MMBtu) over FY26–FY28. Downside risks include further cuts in APM allocations and rapid electric vehicle
